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Phillips 66 (PSX) Announces Open Season for Twin Pipeline

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Phillips 66 (PSX - Free Report) and Bridger Pipeline LLC have announced a joint open season for the proposed Liberty Pipeline.

The pipeline, anticipated to be commissioned in the fourth quarter of 2020, will provide opportunity to shippers to secure crude oil transportation service from the Rockies and Bakken production areas to Corpus Christi, TX. With an initial throughput capacity of 350,000 barrels per day (bpd), the pipeline is expected to expand further, depending on shippers’ interest in the open season.

Phillips 66 also announced an open season for the proposed Red Oak Pipeline.

Red oak Pipeline, anticipated to be commissioned in the fourth quarter of 2020, is expected to provide shippers the opportunity to secure crude oil transportation service from Cushing, Oklahoma, to Corpus Christi, Houston and Beaumont. With an initial throughput capacity of 400,000 bpd, the pipeline is projected to expand, which is dependent on shippers’ interest in the open season.

Phillips 66 is the leading player in its operations like refining, chemicals and midstream in terms of size, efficiency and strength. The company is on track to enhance potential in all segment by streamlining portfolio of assets and investing toward growth.

The company, which reported third-quarter 2018 results on Oct 26, beat the Zacks Consensus Estimate for earnings and revenues. The upside came on the back of higher contribution from all the segments. During the quarter, Phillips 66 generated $582 million of cash from operations. It also returned capital worth $775 million to shareholders.

Zacks Rank & Key Picks

Currently, Natchez, MS-based Callon Petroleum has a Zacks Rank #3 (Hold).

A few better-ranked players in the same sector are Hess Corporation (HES - Free Report) , Enterprise Products Partners L.P. (EPD - Free Report) and Eni SpA (E - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

New York-based Hess is a global integrated energy company. The company delivered an average positive earnings surprise of 230.5% in the last four quarters.

Headquartered in Houston, TX, Enterprise Products Partners is among the leading midstream energy players in North America. It pulled off an average positive earnings surprise of 9.3% in the last four quarters.

Based in Rome, Italy, Eni is among the leading integrated energy players in the world. The partnership reported a negative earnings surprise of 0.3% in the preceding four quarters.

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